Latest Ratios: P/E Ratio 122.8x · EV/EBITDA 10.3x · ROE 1.7%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $834M | $551M | $755M | $637M | $537M | $450M | $257M | $241M | $355M | $528M | $353M |
| Enterprise Value | $1.2B | $885M | $1.0B | $928M | $648M | $516M | $360M | $546M | $569M | $726M | $562M |
| P/E Ratio → | 122.81 | 81.63 | 20.97 | 11.51 | 4.94 | 7.30 | — | 14.38 | 4.17 | 4.75 | 10.51 |
| P/S Ratio | 0.72 | 0.47 | 0.67 | 0.58 | 0.44 | 0.43 | 0.31 | 0.27 | 0.40 | 0.75 | 0.53 |
| P/B Ratio | 2.05 | 1.36 | 1.72 | 1.58 | 1.42 | 1.29 | 0.88 | 0.69 | 1.03 | 1.79 | 1.49 |
| P/FCF | — | — | — | — | 9.13 | 11.86 | — | — | 7.14 | — | — |
| P/OCF | 7.34 | 4.85 | 6.15 | 7.51 | 3.37 | 6.14 | 4.08 | 3.77 | 2.84 | 6.37 | 3.45 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.76 | 0.90 | 0.84 | 0.53 | 0.49 | 0.43 | 0.62 | 0.64 | 1.03 | 0.84 |
| EV / EBITDA | 10.32 | 7.82 | 7.74 | 7.21 | 4.70 | 4.40 | 7.00 | 6.12 | 4.22 | 7.22 | 5.39 |
| EV / EBIT | 83.59 | 50.15 | 17.09 | 11.57 | 4.44 | 6.29 | — | 76.74 | 10.22 | 25.79 | 17.31 |
| EV / FCF | — | — | — | — | 11.02 | 13.59 | — | — | 11.46 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 8.0% | 8.0% | 16.8% | 14.9% | 15.3% | 14.1% | 13.1% | 11.9% | 16.3% | 13.2% | 14.5% |
| Operating Margin | 1.2% | 1.2% | 4.0% | 5.3% | 6.6% | 6.1% | -1.7% | 1.0% | 6.7% | 4.0% | 4.8% |
| Net Profit Margin | 0.6% | 0.6% | 3.2% | 5.0% | 8.9% | 5.8% | -5.1% | 1.0% | 4.8% | 7.9% | 2.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.7% | 1.7% | 8.5% | 14.2% | 29.9% | 19.0% | -13.3% | 2.4% | 13.3% | 20.9% | 7.7% |
| ROA | 0.7% | 0.7% | 3.7% | 6.3% | 15.0% | 9.1% | -5.5% | 1.0% | 6.0% | 8.7% | 2.7% |
| ROIC | 1.5% | 1.5% | 4.8% | 7.5% | 13.3% | 11.7% | -2.0% | 1.1% | 8.4% | 4.5% | 5.4% |
| ROCE | 1.6% | 1.6% | 5.6% | 8.3% | 14.0% | 12.0% | -2.2% | 1.3% | 9.7% | 5.1% | 6.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.84 | 0.84 | 0.68 | 0.73 | 0.48 | 0.21 | 0.38 | 1.00 | 0.69 | 0.72 | 0.91 |
| Debt / EBITDA | 2.99 | 2.99 | 2.26 | 2.28 | 1.30 | 0.63 | 2.17 | 3.91 | 1.76 | 2.13 | 2.08 |
| Net Debt / Equity | — | 0.83 | 0.60 | 0.72 | 0.29 | 0.19 | 0.36 | 0.87 | 0.63 | 0.67 | 0.88 |
| Net Debt / EBITDA | 2.95 | 2.95 | 1.99 | 2.26 | 0.80 | 0.56 | 2.01 | 3.42 | 1.59 | 1.97 | 2.00 |
| Debt / FCF | — | — | — | — | 1.89 | 1.74 | — | — | 4.32 | — | — |
| Interest Coverage | 1.46 | 1.46 | 4.38 | 10.07 | 47.32 | 29.36 | -1.47 | 0.64 | 6.40 | 3.41 | 3.94 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.11 | 1.11 | 1.18 | 1.09 | 1.43 | 1.32 | 1.11 | 1.58 | 1.66 | 2.00 | 1.54 |
| Quick Ratio | 1.08 | 1.08 | 1.15 | 1.06 | 1.40 | 1.30 | 1.08 | 1.55 | 1.63 | 1.95 | 1.49 |
| Cash Ratio | 0.02 | 0.02 | 0.20 | 0.01 | 0.44 | 0.06 | 0.06 | 0.27 | 0.18 | 0.19 | 0.09 |
| Asset Turnover | — | 1.06 | 1.13 | 1.16 | 1.53 | 1.61 | 1.24 | 1.00 | 1.14 | 1.09 | 1.08 |
| Inventory Turnover | 168.90 | 168.90 | 166.75 | 193.76 | 293.19 | 270.46 | 233.73 | 185.38 | 182.20 | 144.64 | 144.08 |
| Days Sales Outstanding | — | 54.40 | 49.08 | 50.81 | 38.52 | 56.30 | 47.48 | 39.21 | 69.61 | 67.70 | 59.68 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.9% | 1.3% | 0.8% | 0.9% | 0.8% | — | — | — | — | — | — |
| Payout Ratio | 98.9% | 98.9% | 16.1% | 10.5% | 3.9% | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.8% | 1.2% | 4.8% | 8.7% | 20.2% | 13.7% | — | 7.0% | 24.0% | 21.0% | 9.5% |
| FCF Yield | — | — | — | — | 10.9% | 8.4% | — | — | 14.0% | — | — |
| Buyback Yield | 4.4% | 6.6% | 0.0% | 4.0% | 15.8% | 2.3% | 6.8% | 0.0% | 0.1% | 0.1% | 0.3% |
| Total Shareholder Yield | 5.2% | 7.9% | 0.8% | 4.9% | 16.6% | 2.3% | 6.8% | 0.0% | 0.1% | 0.1% | 0.3% |
| Shares Outstanding | — | $25M | $28M | $28M | $31M | $34M | $35M | $37M | $37M | $37M | $37M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying CVLG stock.
Covenant Logistics Group, Inc.'s current P/E ratio is 122.8x. The historical average is 15.0x. This places it at the 100th percentile of its historical range.
Covenant Logistics Group, Inc.'s current EV/EBITDA is 10.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.5x.
Covenant Logistics Group, Inc.'s return on equity (ROE) is 1.7%. The historical average is 4.9%.
Based on historical data, Covenant Logistics Group, Inc. is trading at a P/E of 122.8x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Covenant Logistics Group, Inc.'s current dividend yield is 0.86% with a payout ratio of 98.9%.
Covenant Logistics Group, Inc. has 8.0% gross margin and 1.2% operating margin.
Covenant Logistics Group, Inc.'s Debt/EBITDA ratio is 3.0x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Margin compression amid heavy investment
Metrics are mathematically derived from official filings.
Valuation Disconnect from Earnings Volatility
The forward P/E of 20.58 appears reasonable relative to peers, but the trailing P/E of 130.93 reflects severe earnings volatility, suggesting the market is pricing in a significant recovery from recent losses.
The wide gap between the trailing and forward P/E multiples indicates the market is discounting the recent negative earnings in 2025Q4 and focusing on a normalized earnings trajectory. The EV/EBITDA of 10.80 is at a premium to peers like Werner (8.54) and Marten (9.75), which may reflect the market's expectation for Covenant's revenue growth to translate into future cash flow. However, the current valuation appears to assume a successful margin recovery that is not yet evident in the reported gross margin compression.
Gross Margin Erosion Undermines Core Earning Power
Gross margins have collapsed from 16.1% in 2025Q2 to 7.9% in 2026Q2, a severe deterioration that suggests the company's core pricing power or cost structure is under significant pressure.
The 820 basis point decline in gross margin over four quarters is the most critical profitability trend, as it directly erodes the company's ability to cover fixed costs and generate operating income. While operating margins have stabilized around 2.7%, this is only possible because operating expenses have been tightly controlled, masking the underlying weakness in the cost of revenue. This margin profile suggests Covenant is operating in a highly competitive freight market where it lacks pricing power, making its recent revenue growth potentially economically destructive.
ROIC Fails to Cover Cost of Capital
Return on Invested Capital has averaged just 0.9% over the last ten quarters, a level that appears to be well below the company's cost of capital and indicates value destruction.
The consistently low ROIC, which peaked at only 1.7% in 2024Q3, suggests that the company's heavy investment in property, plant, and equipment is not generating adequate returns. This trend is particularly concerning given the 44% surge in net PPE over the last year, indicating that new assets are not yet contributing meaningfully to profitability. The low ROIC is a direct consequence of the compressed gross margins and high asset base, pointing to a potential misallocation of capital in a challenging market.
Working Capital Management Shows Strain
Days Sales Outstanding has increased to 49 days in 2026Q2 from 46 days in 2025Q2, suggesting potential collection challenges or a shift in customer mix toward slower-paying clients.
The lengthening DSO, combined with the volatile cash conversion cycle, indicates that Covenant's working capital efficiency is deteriorating. The company's ability to convert sales into cash is being hampered by slower collections, which is a significant concern given its negative free cash flow position. This trend may reflect broader industry dynamics where shippers are extending payment terms, putting additional strain on Covenant's liquidity and requiring it to finance a larger portion of its operations.
Leverage Elevated Amid Investment Cycle
The debt-to-equity ratio has risen to 0.79 in 2026Q2, while the interest coverage ratio has fallen to 3.07, indicating that debt service is becoming less comfortable as the company finances its fleet expansion.
The increase in leverage is a direct result of the company's decision to fund its massive PPE expansion with debt rather than equity or retained earnings. While the interest coverage ratio remains above 3.0, the downward trend from 6.41 in 2025Q2 suggests that the company's ability to service its debt is weakening as profitability declines. This combination of rising leverage and falling interest coverage increases the company's financial risk, particularly if the freight market remains challenging and margins do not recover.
The Misleading Safety of EV/EBITDA
The EV/EBITDA multiple is the most commonly misapplied ratio for Covenant, as it obscures the company's heavy capital expenditure requirements and the true cost of maintaining its asset-heavy fleet.
For a capital-intensive trucking company like Covenant, EV/EBITDA can be misleading because it adds back depreciation and amortization, which are not non-cash expenses but rather represent the real economic cost of replacing aging trucks and equipment. The company's capital expenditures have averaged over 15% of revenue, a significant cash outflow that EV/EBITDA ignores. A more appropriate metric would be EV/FCF or a focus on ROIC, which better capture the true return on the substantial capital invested in the business.